RES 1979-98 - 0000680417.0
RESOLUTION NO. 98 - 1979
RESOLUTION RELATING TO THE AUTHORIZATION AND ISSUANCE OF
REVENUE BONDS OF THE CITY UNDER MINNESOTA STATUTES,
CHAPTER 474, FOR THE PURPOSE OF FINANCING A PROJECT
THEREUNDER; AND AUTHORIZING AN APPLICATION BY THE CITY TO
THE MINNESOTA COMMISSIONER OF SECURITIES
BE IT RESOLVED by the City Council of the City of Fridley, Minnesota, as
follows:
Section 1. Recitals.
1.01. The Legislature of the State of Minnesota in Minnesota
Statutes, Chapter 474, as amended (the Act), has found and declared that the
welfare of the State requires active promotion, attraction, encouragement and
development of economically sound industry and commerce through governmental
acts to prevent, so far as possible, emergence of blighted lands and areas of
chronic unemployment; has authorized municipalities to issue revenue bonds to
finance, in whole or in part, the cost of the acquisition, construction,
reconstruction, improvement and betterment of projects, including any
properties, real or personal, used or useful in connection with a revenue
producing enterprise engaged in any business; and has authorized
municipalities to enter into "revenue agreements ", as defined in the Act,
with any person, firm, or public or private corporation or federal or state
governmental subdivision or agency (the Contracting Party) providing for the
payment by the Contracting Party of amounts sufficient to provide for the
prompt payment of principal and interest on the revenue bonds.
1.02. It has been propsoed that the City issue its revenue bonds,
pursuant to the authority of the Act, in an amount not exceeding in aggregate
principal amount $1,000,000, or such lesser amount as may be necessary to
finance all or a portion of the costs of the the acquisition, construction,
furnishing, equipping, improvement and betterment of certain real and
personal properties in the City to be used as an addition to the present
manufacturing facility of Medtronic, Inc. (all such properties being
hereinafter referred to as the Project), and to make the proceeds of the sale
of those revenue bonds available to Medtronic, Inc., a Minnesota corporation
(the Company), which will agree to pay the City amounts sufficient to pay
promptly the principal of and interest on the revenue bonds, and will agree
to cause the Project to be constructed. The Project is presently estimated
to cost approximately $1,000,000.
103. The City has been advised that conventional, commercial
financing to pay the capital cost of the Project is available only on a
limited basis and at such high costs of borrowing that the scope of the
Project or the economic feasibility of operating the Project would be
significantly reduced, but that with the aid of municipal financing, and its
resulting low borrowing costs, the Project can be constructed as designed and
its operation is economically more feasible.
1.04. This Council has been advised by Dain, Kalman & Quail,
Incorporated (the Underwriters), the proposed underwriters of the revenue
bonds described herein, that revenue bonds of the City could be issued and
sold upon favorable rates and terms to finance the Project.
1.05. There has been presented to this Council a form of Memorandum
of Agreement relating to the issuance of revenue bonds. of the City to
finance costs of the Project.
171
Page 2 -- RESOLUTION NO. 98 - 1979
Section 2. Public Hearing.
2.01. As required by Section 474.01, Subdivision 7b of the Act,
this Council, pursuant to a resolution adopted on August 20, 1979, called and
held a public hearing on the proposal to undertake and finance the Project.
Notice of the time and place of the hearing, and stating the general nature
of the Project and an estimate of the principal amount of bonds to be issued
to finance the Project, was published at least once not less than fifteen
days nor more than thirty days prior to the date fixed for the hearing, in
the official newspaper of the City and a newspaper of general circulation of
the City. A draft copy of the proposed application to the Minnesota
Commissioner of Securities, together with all attachments and exhibits
thereto, was available for public inspection following the publication of
such notice at the place and times set forth in the notice.
2.02. All parties who appeared at the public hearing were given an
opportunity to express their views with respect to the proposal to undertake
and finance the Project. This council has heard and considered the views
expressed at the public hearing and the information submitted to the City by
the Company and the Underwriters.
Section 3. Approvals and Authorizations
3.01. On the basis of information given the City to date, and the
views expressed at the public hearing, it is found and determined that the
Project furthers the purposes stated in Section 474.01 of the Act, and that
it would be in the best interest of the City to issue its industrial
development revenue bonds under the provisions of the Act to finance costs of
the Project in an amount not to exceed $1,000,000 (the Bonds).
3.03. If the Bonds are issued and sold, the City will enter into a
lease, mortgage, direct or installment sale contract, loan agreement, take or
pay or similar agreeement, secured or unsecured, satisfying the requirements
of the Act (the Revenue Agreement) with the Company. The amounts payable by
the Company to the City under the Revenue Agreement will be sufficient to pay
the principal of and interest and redemption premium, if any, on the Bonds as
and when the same shall become due and payable.
3.04. The form of Memorandum of Agreement is approved and the Mayor
and City Manager are authorized to execute the Memorandum of Agreement, with
such changes as the City Attorney may approve, on behalf of the City.
3.05. In accordance with the Act, the Mayor and City Manager are
hereby authorized and directed to submit the proposal for the Project to the
Minnesota Commissioner of Securities for her approval of the Project. The
Mayor, City Manager, City Clerk, City Attorney and other officers, employees
and agents of the City are hereby authorized to provide the Commissioner with
any preliminary information she may need for this purpose, and the City
Attorney is authorized to initiate and assist in the preparation of such
documents as may be appropriate to the Project.
3.06. The City will comply with all of the provisions of the Act,
including Section 474.01, Subdivision 8 thereof, in the issuance of the Bonds
and the financing of the Project.
3.02. The Project is
hereby given preliminary approval by the City
and the issuance of the Bonds
for such purposes approved. The Bonds
shall
not be issued until the Project
has been approved by the Commissioner
of
'
Securities as provided by the
Underwriters have agreed upon
Act and until the City, the Company and
the details of the Bonds and provisions
the
for
their payment.
3.03. If the Bonds are issued and sold, the City will enter into a
lease, mortgage, direct or installment sale contract, loan agreement, take or
pay or similar agreeement, secured or unsecured, satisfying the requirements
of the Act (the Revenue Agreement) with the Company. The amounts payable by
the Company to the City under the Revenue Agreement will be sufficient to pay
the principal of and interest and redemption premium, if any, on the Bonds as
and when the same shall become due and payable.
3.04. The form of Memorandum of Agreement is approved and the Mayor
and City Manager are authorized to execute the Memorandum of Agreement, with
such changes as the City Attorney may approve, on behalf of the City.
3.05. In accordance with the Act, the Mayor and City Manager are
hereby authorized and directed to submit the proposal for the Project to the
Minnesota Commissioner of Securities for her approval of the Project. The
Mayor, City Manager, City Clerk, City Attorney and other officers, employees
and agents of the City are hereby authorized to provide the Commissioner with
any preliminary information she may need for this purpose, and the City
Attorney is authorized to initiate and assist in the preparation of such
documents as may be appropriate to the Project.
3.06. The City will comply with all of the provisions of the Act,
including Section 474.01, Subdivision 8 thereof, in the issuance of the Bonds
and the financing of the Project.
172
Page 3 -- RESOLUTION NO. 98 - 1979
i
Section 4. Special Obligations
4.01 In all events, it is understood, however, that the revenue
bonds of the City shall not constitute a charge, lien or encumbrance, legal
or equitable, upon any property of the City except the Project, if it becomes
the property of the City, and each bond, when, as and if issued, is payable
solely from the revenues received from the Project and property pledged to
the payment thereof, and shall not constitute a debt of the City.
WX-4MA 9
MAYOR - WILLIAM J EE
ATTEST:
�CITY�CLER�K ~- ARVIN C. BRUNSELL